Title: The influence of reputation and regulation related factors on the independence of the Greek certified auditors

Authors: Panayotis Tahinakis, John Mylonakis

Addresses: Department of Accounting and Finance, University of Macedonia, 156 Egnatia str., 540–06 Thessaloniki, Greece. ' 10 Nikiforou str., Glyfada, 166–75, Athens, Greece

Abstract: In the Greek market, the recent liberalisation process from a single state-owned audit body up to the establishment of private auditing entities (local and foreign) resulted in the hiring of a vast amount of certified auditors. Factors like negotiating auditing fee, professional sanctions, legal liability, fear of loss of reputation and clientele as a result of inappropriate auditing behaviour were examined. Contrary to past surveys these factors are never examined in Greece, so the findings of this research are a clear contribution to the academic literature. A one-way Analysis of Variance (ANOVA) was used. Ranking the effects of the above four factors across three different but related professional groups, a high level of consistency was evident. The new element of this research is that each variable examined has a definite potential impact on the credibility of the independence of the Greek certified auditors.

Keywords: audit independence; audit profession; certified auditors; auditing fee; legal liability; professional sanctions, financial reporting; Greece; reputation; regulation.

DOI: 10.1504/IJMP.2005.007134

International Journal of Management Practice, 2005 Vol.1 No.2, pp.175 - 197

Published online: 29 May 2005 *

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